By Gerardo R. Partido
Variety News Staff

THE Tourist Attraction Fund increased for the third year in a row to $20.1 million, a 5 percent increase from $19.1 million in fiscal year 2005, the Office of the Public Auditor reported yesterday.
But the 2006 Tourist Attraction Fund, whose total revenue is derived primarily from hotel occupancy taxes, is still short of the $23 million reported in FY 2001.
OPA said the fund’s expenditures for FY 2006 totaled $20.8 million.
Major areas of expenditures included payments of $12.1 million to the Guam Visitors Bureau for its FY 2006 operations, up 19 percent from the FY 2005 payments of $10.2 million.
Other expenditures were $7.3 million for debt service; $636,000 to the Guam Police Department; and $553,000 to the Mayor’s Council of Guam for island beautification.
Despite the increase in revenue, OPA warned that TAF’s operating fund has no cash because it is owed $1.7 million by the general fund.
Due to the liquidity crisis of the government of Guam, Standard & Poor’s has placed a “B” rating on the general fund general obligation debt and has placed GovGuam on its credit watch.
The S&P action is based on the government of Guam’s disclosure of the need to borrow up to $6 million from local banks to meet its current obligation for public school system employees.
According to OPA, it is not known when the general fund will be able to repay the $1.7 million to the TAF.